BP BHEAD INT S

AN ACT Relating to the department of labor and industries; amending RCW 18.27.010, 18.27.040, and 18.27.060; adding a new section to chapter 43.22 RCW; adding new sections to chapter 18.27 RCW; repealing RCW 18.27.030; prescribing penalties; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 18.27.010 and 1973 1st ex.s. c 153 s 1 are each amended to read as follows:

((A)) Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Board" means the contractor's registration board.

(2) "Contractor" ((~~as used in this chapter is~~)) means any person, firm, or corporation who or which, in the pursuit of an independent business undertakes to, or offers to undertake, or submits a bid to, construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish, for another or with intent to sell, any building, highway, road, railroad, excavation, or other structure, project, development, or improvement attached to real estate or to do any part thereof including the installation of carpeting or other floor covering, the erection of scaffolding or other structures, or works in connection therewith, or who installs or repairs roofing or siding((~~; or, who, to do similar work upon his own property, employs members of more than one trade upon a single job or project or under a single building permit except as otherwise provided herein~~)). It is prima facie evidence that there was an intent of offering the structure for sale if the person who constructed the structure or arranged to have the structure constructed does not occupy the structure after its completion for its intended use. A "general contractor" is a contractor whose business operations require the use of more than two unrelated building trades or crafts whose work the contractor shall superintend or do in whole or in part; the term "general contractor" shall not include an individual who does all work personally without employees or other "specialty contractors" as defined ((~~herein~~)) in this section. The terms "general contractor" and "builder" are synonymous. A "specialty contractor" is a contractor whose operations as such do not fall within the ((~~foregoing~~)) definition of "general contractor".

(3) "Department" ((~~as used in this chapter~~)) means the department of labor and industries.

(4) "Director" ((~~as used in this chapter~~)) means the director of ((~~the department of~~)) labor and industries.

NEW SECTION. Sec. 2. There is hereby created a contractor's registration board consisting of nine members to be appointed by the governor subject to confirmation by the senate. The members of the contractor's registration board shall be selected and appointed as follows: One member shall be selected from a list of three names submitted by a state-wide organization of contractors who are primarily engaged in residential construction and remodeling; three shall be licensed contractors; one shall be selected from a list of three names submitted by a state-wide labor organization representing workers in the building trades; two shall be certified building inspectors; one shall be an employee, officer, or representative of a corporation or firm engaged in the business of manufacturing or distributing construction materials, equipment, or devices; and one shall be a currently licensed structural engineer with the state of Washington. The director, or director's designee, shall serve ex officio.

The original board shall be appointed on July 1, 1994, with three members being appointed for three years, three members being appointed for two years, and three members being appointed for one year.

Thereafter, the governor shall appoint or reappoint board members for terms of three years. The governor shall also fill vacancies caused by death, resignation, or otherwise for the unexpired terms of such members by appointing their successors from the same group or constituency. The same procedure shall be followed in making such subsequent appointments as is provided for the original appointments. The board, at this first meeting shall elect one of its members to serve as chair. Meetings of the board shall be held monthly. Staff services required by the board shall be provided by the department.

Each member of the board shall receive compensation in accordance with RCW 43.03.240 and shall be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060 which shall be paid out of the contractors registration fund, upon vouchers approved by the director.

NEW SECTION. Sec. 3. The board shall review complaints concerning registered contractors pursuant to the procedures set forth in sections 8 through 11 of this act. The board, after reviewing a complaint concerning the registered contractor, may suspend or revoke the contractor's certificate of registration for such a period as the board determines.

NEW SECTION. Sec. 4. (1) A person who wishes to register as a contractor shall submit an application upon a form prescribed by the board. The application shall include, but not be limited to, at least the following information regarding the applicant:

(a) Classification of registration being sought.

(b) A list of unsatisfied judgments resulting from bond claims and litigation involving the applicant or its principals within the prior two years.

(d) Workers' compensation insurance account number if help is hired or traded.

(e) Unemployment insurance account number if help is hired.

(f) State withholding tax account number if help is hired.

(g) Federal employer identification number, if help is hired or if self-employed and participating in a retirement plan.

(h) The name and address of:

(i) Each partner or venturer, if the applicant is a partnership or joint venture.

(ii) The owner, if the applicant is an individual proprietorship.

(iii) The corporate officers, if the applicant is a corporation.

(2) An applicant shall conform to the information provided by the applicant on the application and to the terms of the application.

NEW SECTION. Sec. 5. It is the duty of a contractor to notify the board of any change of address while registered and for one year following the date the contractor's registration expires or otherwise becomes inactive. The contractor shall so notify the board within ten days of the date upon which the change of address occurs. Any proposed or final order or notice of hearing directed by the board to the last known address of record shall be considered delivered when deposited in the United States mail and sent registered or certified or post office receipt secured. Any other communication directed by the board to the last known address of record shall be considered delivered when deposited in the United States mail, first class postage paid.

Sec. 6. RCW 18.27.040 and 1988 c 139 s 1 are each amended to read as follows:

(1) ((Each applicant shall, at the time of applying for or renewing a certificate of registration, file with the department a surety bond issued by a surety insurer who meets the requirements of chapter 48.28 RCW in a form acceptable to the department running to the state of Washington if a general contractor, in the sum of six thousand dollars; if a specialty contractor, in the sum of four thousand dollars, conditioned that the applicant will pay all persons performing labor, including employee benefits, for the contractor, will pay all taxes and contributions due to the state of Washington, and will pay all persons furnishing labor or material or renting or supplying equipment to the contractor and will pay all amounts that may be adjudged against the contractor by reason of negligent or improper work or breach of contract in the conduct of the contracting business. A change in the name of a business or a change in the type of business entity shall not impair a bond for the purposes of this section so long as one of the original applicants for such bond maintains partial ownership in the business covered by the bond.

(2) Any contractor registered as of the effective date of this 1983 act who maintains such registration in accordance with this chapter shall be in compliance with this chapter until the next annual renewal of the contractor's certificate of registration. At that time, the contractor shall provide a bond, cash deposit, or other security deposit as required by this chapter and comply with all of the other provisions of this chapter before the department shall renew the contractor's certificate of registration.

~~(3)~~)) Any person, firm, or corporation having a claim against the contractor for any of the items referred to in this section may bring suit upon such bond or deposit in the superior court of the county in which the work was done or of any county in which jurisdiction of the contractor may be had. The surety issuing the bond shall be named as a party to any suit upon the bond. Action upon such bond or deposit shall be commenced by filing the summons and complaint with the clerk of the appropriate superior court within one year from the date of expiration of the certificate of registration in force at the time the claimed labor was performed and benefits accrued, taxes and contributions owing the state of Washington became due, materials and equipment were furnished, or the claimed contract work was completed. Service of process in an action against the contractor, the contractor's bond, or the deposit shall be exclusively by service upon the department. Three copies of the summons and complaint and a fee of ten dollars to cover the handling costs shall be served by registered or certified mail upon the department at the time suit is started and the department shall maintain a record, available for public inspection, of all suits so commenced. Service is not complete until the department receives the ten-dollar fee and three copies of the summons and complaint. Such service shall constitute service on the registrant and the surety for suit upon the bond or deposit and the department shall transmit the summons and complaint or a copy thereof to the registrant at the address listed in his or her application and to the surety within forty-eight hours after it shall have been received.

((~~(4)~~)) (2) The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond nor for any monetary penalty assessed pursuant to this chapter for an infraction. The liability of the surety shall not cumulate where the bond has been renewed, continued, reinstated, reissued or otherwise extended. The surety upon the bond may, upon notice to the department and the parties, tender to the clerk of the court having jurisdiction of the action an amount equal to the claims thereunder or the amount of the bond less the amount of judgments, if any, previously satisfied therefrom and to the extent of such tender the surety upon the bond shall be exonerated but if the actions commenced and pending at any one time exceed the amount of the bond then unimpaired, claims shall be satisfied from the bond in the following order:

(a) Labor, including employee benefits;

(b) Claims for breach of contract by a party to the construction contract;

(d) Taxes and contributions due the state of Washington;

(e) Any court costs, interest, and attorney's fees plaintiff may be entitled to recover.

(((5) In the event that any final judgment shall impair the liability of the surety upon the bond so furnished that there shall not be in effect a bond undertaking in the full amount prescribed in this section, the department shall suspend the registration of such contractor until the bond liability in the required amount unimpaired by unsatisfied judgment claims shall have been furnished. If such bond becomes fully impaired, a new bond must be furnished at the increased rates prescribed by this section as now or hereafter amended.

~~(6)~~)) (3) In lieu of the surety bond required by this section the contractor may file with the department a deposit consisting of cash or other security acceptable to the department.

((~~(7)~~)) (4) Any person having filed and served a summons and complaint as required by this section having an unsatisfied final judgment against the registrant for any items referred to in this section may execute upon the security held by the department by serving a certified copy of the unsatisfied final judgment by registered or certified mail upon the department within one year of the date of entry of such judgment. Upon the receipt of service of such certified copy the department shall pay or order paid from the deposit, through the registry of the superior court which rendered judgment, towards the amount of the unsatisfied judgment. The priority of payment by the department shall be the order of receipt by the department, but the department shall have no liability for payment in excess of the amount of the deposit.

((~~(8)~~)) (5) The director may promulgate rules necessary for the proper administration of the security.

NEW SECTION. Sec. 7. (1) A person who wishes to register as a contractor or renew a certificate of registration shall file with the board a surety bond with one or more corporate sureties authorized to do business in this state in the amount set forth in subsections (2) and (3) of this section, conditioned that the applicant, with regard to work subject to this chapter, will pay claims ordered paid by the board under section 10 of this act. Bonds filed under this subsection shall remain in effect for at least one year or until depleted by claims paid under section 10 of this act, unless the surety sooner cancels the bond. At the discretion of the surety the bond may be continued for an additional period by continuation certificate. The aggregate liability of the surety under the bond for claims against the bond shall not exceed the penal sum of the bond no matter how many years the bond is in force. No extension by continuation certificate, reinstatement, reissue, or renewal of the bond shall increase the liability of the surety.

(2) A general contractor shall obtain a surety bond in the amount of six thousand dollars.

(3) A specialty contractor shall obtain a surety bond in the amount of four thousand dollars.

(4) If the amount the registrant must pay against the bond under this section exceeds the amount of the bond, the board shall suspend the certificate of the registrant until the amount owed is paid. The board, as a condition of ending the suspension, may require the registrant to file a bond of an amount up to five times as much as the amount required of a registrant under subsections (2) and (3) of this section.

(5) An applicant for registration or renewal, who has an outstanding final judgment by a court against the applicant that a bond under this section would have been subject to, shall not be permitted to register or renew a registration until the judgment is satisfied. The board, as a condition of registering the applicant, may require the applicant to file a bond of an amount up to five times as much as the amount required of an applicant under subsections (2) and (3) of this section.

(6) The bond required under this section is for the exclusive purpose of payment of final orders of the board in accordance with this chapter.

(7) Upon determination of a claim under section 10 of this act against a contractor who holds a bond required under this section, the board shall notify the surety on the bond of the final order in a manner determined by the board by rule. The notification shall include a list of all claims upon which a final order has been issued.

(8) A surety shall be obligated to pay amounts ordered by the board or appeal to a court of competent jurisdiction within thirty days of the date of the board's order. A surety shall not be liable to an assured for a good faith decision not to contest the board's order.

(9) No suit or action may be commenced against a surety on a bond required under this section until thirty days after the date that the surety is notified by the board under section 10 of this act that payment is due on the claim.

(10) In any action against a surety on a bond under this section that is based on the failure of the surety to pay a claim or on the denial of a claim by the surety, the court may award:

(a) Costs;

(b) Reasonable attorneys' fees to the prevailing party as part of the costs; and

(c) If the surety is ordered to pay a claim on the bond that the surety arbitrarily and capriciously refused to pay upon order of the board, twice the amount of damages against the surety as ordered by the board.

NEW SECTION. Sec. 8. (1) The board may revoke, suspend, or refuse to issue or reissue a certificate of registration and the board may assess a civil penalty as provided in section 17 of this act if it determines after notice and opportunity for hearing that:

(a) The registrant or applicant has violated section 4 of this act.

(b) The registrant or applicant has failed to pay in full any final judgment on claims adjudged by the board or by a court of competent jurisdiction referred to in section 7 of this act.

(d) The surety bond required by section 7 of this act is not currently in effect.

(e) The registrant or applicant has engaged in conduct as a contractor that is dishonest or fraudulent that the board finds injurious to the welfare of the public.

(f) The registrant has violated a rule or order of the board.

(g) The registrant has knowingly assisted an unregistered person to act in violation of this chapter.

(h) A lien was filed on a structure because the registrant or applicant wrongfully failed to perform a contractual duty to pay money to the person claiming the lien.

(i) The registrant has knowingly provided false information to the board.

(j) The registrant has worked without a construction permit where such permit is required and such work resulted in a claim filed with the board. For purposes of this subsection (1)(j), "construction permit" includes a building permit, electrical permit, mechanical permit, or plumbing permit.

(2) In addition to all other remedies, when it appears to the board that a person has engaged in, or is engaging in, any act, practice, or transaction which violates the provisions of this chapter, the board may direct the attorney general or the prosecuting attorney of the county in which the act, practice, or transaction occurs, to apply to the court for an injunction restraining the person from violating the provisions of this chapter.

(3) Before any contractor's certificate of registration is suspended or revoked, the holder thereof shall be given written notice of the department's intention to do so, delivered by registered mail, return receipt requested, to the holder's last known address. The notice shall enumerate the allegations against such holder, and shall give the holder the opportunity to request a hearing before the board. At such hearing, the department and the holder shall have opportunity to produce witnesses and give testimony. The hearing shall be conducted in accordance with the provisions of chapter 34.05 RCW. The board shall render its decision based upon the testimony and evidence presented, and shall notify the parties immediately upon reaching its decision. A majority of the entire membership of the board shall be necessary to render a decision on a suspension or revocation.

NEW SECTION. Sec. 9. The board may suspend the registration of or refuse to register any corporation, partnership, or individual if any individual who is an owner, shareholder, or officer of the business is or was the owner or officer of a business that owes any amount pursuant to a final order of the board.

NEW SECTION. Sec. 10. The board shall only accept and make determinations for damages against contractors registered under this chapter. If upon final determination by the board a contractor fails to pay a claim determined against the contractor by the board, the board shall notify the surety that payment is due from the bond required under section 7 of this act.

The board shall only accept and make determinations of the following types of claims:

(1) Claims against a contractor by the owner of a structure or other real property for the following in performing any work subject to this chapter:

(a) Negligent work;

(b) Improper work; or

(2) Claims against a contractor by the owner of a structure or other real property to discharge or recoup funds expended in discharging a lien. The board may reduce any amount adjudged by the board under this section by any amount the claimant owes the contractor. The board shall only determine claims under this section if:

(a) The owner has paid the contractor for that contractor's work subject to this chapter; and

(b) A lien is filed against the property of the owner because the contractor failed to pay the person claiming the lien for that person's contribution toward completion of the improvement.

(3) Claims against a registered subcontractor by a registered contractor for the following in performing any work subject to this chapter:

(a) Negligent work;

(b) Improper work; or

(4) Claims by persons furnishing labor to a contractor.

(5) Claims, as limited by rule of the board, by persons furnishing material or renting or supplying equipment to a contractor. The board shall not accept claims under this section that total less than one hundred fifty dollars.

NEW SECTION. Sec. 11. (1) Any person having a claim against a contractor of the type listed in section 10 of this act may file with the board a statement of the claim in such form as the board prescribes.

(2) The board may refuse to accept or refuse at any time to continue processing a claim if:

(a) The same facts and issues involved in the claim have been submitted to a court of competent jurisdiction for determination or have been submitted to any other entity authorized by law or the parties to effect a resolution and settlement;

(b) The claimant does not permit the contractor against whom the claim is filed to be present at any inspection made by the board;

(c) The board determines that the conduct of the claimant has prevented or substantially prevented the contractor who is otherwise able, from complying with the recommendations of the board. However, the board may refuse to accept or further process a claim under this subsection (2)(c) only if the contractor was registered at the time the work was first performed and is registered at the time the board makes its recommendations; or

(d) The board determines that the nature or complexity of the claim is such that a court is the appropriate forum for the adjudication of the claim.

(3) The board shall not process a claim unless it is filed in a timely manner as follows:

(a) If the owner of a new structure files the claim, the board must receive the claim not later than one year after the date the structure was first occupied for the purpose for which it was built or two years after completion, whichever comes first.

(b) If the owner of an existing structure files the claim, the board must receive the claim not later than one year after the date the work was substantially completed.

(c) Regardless of whether the claim involves a new or existing structure, if the owner files the claim because the contractor failed to begin the work, the board must receive the claim not later than one year after the date the parties entered into the contract.

(d) Regardless of whether the claim involves a new or existing structure, if the owner files the claim because the contractor failed to substantially complete the work, the board must receive the claim not later than one year after the date the contractor ceased work on the structure.

(e) If a registered contractor files the claim against a registered contractor who performed work as a subcontractor, the board must receive the claim not later than one year after the date the structure was first occupied or two years after completion, whichever comes first.

(f) If a registered contractor files the claim against a registered contractor who performed work as a subcontractor, because the subcontractor failed to substantially complete the work, the board must receive the claim not later than one year after the date the subcontractor ceased to work on the structure.

(g) If a material or equipment supplier, an employee, or a registered subcontractor files the claim, the board must receive the claim not later than one year after the date payment from the registrant became due.

(4) Upon acceptance of the statement of claim, the board shall give notice to the contractor against whom the claim is made and shall initiate proceedings to determine the validity of the claim. If, after investigation, the board determines that a violation of this chapter or of any rule adopted under this chapter has occurred, the board shall recommend to the registrant such action as the board considers appropriate to compensate the claimant for any damages incurred as the result of the violation. If the contractor complies with the recommendation, the board shall give that fact due consideration in any subsequent disciplinary proceeding brought by the board.

(5) In order to have access to the bond required under this section, the plaintiff in an action against a general contractor or specialty contractor must deliver a copy of the complaint to the board and to the surety on the bond by certified mail, return receipt requested. The surety shall not be joined as a party to the action, but shall have the absolute right to intervene in the action. If notice is so given, the surety shall be bound by any judgment entered in the action, except as limited by this section. The date the board receives a copy of the complaint shall be the date the board uses to establish the priority of the claim.

(6) If a court issues a judgment against a general contractor or a specialty contractor, the plaintiff shall deliver a certified copy of the judgment to the board and to the surety within thirty days of the date of entry of the judgment in order to retain a claim against the bond. Execution on the judgment against the bond shall only be in accordance with this section.

(7) Upon receipt of a timely filed copy of the judgment, the board shall issue a proposed order in the amount of the judgment, together with any court costs, interest, and attorneys' fees awarded by the court. The board's determination of the claim shall be limited only to a determination of whether the claim comes within the jurisdiction of the board.

(8) With the prior agreement of the claimant and registrant, the board may resolve the claim through binding arbitration under rules adopted by the board. The board may also use the arbitration procedure to resolve a dispute between a person bringing a claim and any other contractor who agrees to follow the rules of the board.

NEW SECTION. Sec. 12. (1) If a final board order is not paid by the registrant, the board shall notify the surety on the bond.

(2) An order of the board that determines a claim under sections 10 through 13 of this act that becomes final by operation of law or on appeal and remains unpaid twenty days after the period of time allowed in this section has expired, shall constitute a judgment in favor of the claimant against the person and may be recorded with the county auditor in any county of this state.

(3) Upon receipt, the auditor shall record the order in the county auditor lien record. After recording, the order is equivalent to a judgment and is controlled by statutes relating to judgments.

(4) Determinations by the board or judgments against the surety bond of a contractor shall be satisfied in the following priority in any ninety-day period. A ninety-day period shall begin on the date the first claim is filed with the board. A subsequent ninety-day period shall begin on the date the first claim is filed with the board after the close of each preceding ninety-day period. Within a ninety-day period:

(a) Board determinations and judgments as a result of claims against a contractor by the owner shall have payment priority to the full extent of the bond over all other types of claims.

(b) If the claims described in (a) of this subsection do not exhaust the bond, then amounts due as a result of all other types of claims filed within that ninety-day period may be satisfied from the bond in the following order:

(i) Labor, including employee benefits.

(ii) Claims for breach of contract by a party to the construction contract.

(iii) Any court costs, interest, and attorneys' fees the plaintiff may be entitled to recover. The total cost paid from any one bond for court costs, interest, and attorneys' fees shall not exceed two thousand dollars.

(c) If the total claims filed with the board against a general contractor or a specialty contractor within ninety days after the board receives notice of the first claim against the contractor exceed the amount of the bond available for such claims, the bond shall be apportioned as the board determines, subject to the priorities established under this section.

(d) If the total amounts due as a result of claims filed with the board within ninety days after the first claim is filed do not exceed the amount of the bond available for such claims, all amounts due as a result of claims filed within the ninety-day period shall have priority over all claims subsequently filed until the amount of the bond available for such claims is exhausted, but not later than one year after:

(i) The date of expiration of the certificate of registration in force at the time the work was completed or abandoned; or

(ii) Cancellation by the surety of the certificate of registration in force at the time the work was completed or abandoned;

whichever occurs first.

NEW SECTION. Sec. 13. A corporation that is registered or required to be registered as a contractor under this chapter and that is a party in any proceeding before the board or any representative thereof may appear or be represented in the proceeding by an officer of the corporation who is not a member of the Washington state bar.

Sec. 14. RCW 18.27.060 and 1983 1st ex.s. c 2 s 19 are each amended to read as follows:

(1) A certificate of registration shall be valid for one year and shall be renewed on or before the expiration date. The department shall issue to the applicant a certificate of registration upon compliance with the registration requirements of this chapter. On and after July 1, 1995, such registration requirements shall include submission of evidence of successful completion of the education requirements in section 15 of this act.

(2) If the department approves an application, it shall issue a certificate of registration to the applicant. The certificate shall be valid for:

(a) One year;

(b) Until the bond expires; or

(c) Until the insurance expires, whichever comes first. The department shall place the expiration date on the certificate.

(3) A contractor may supply a short-term bond or insurance policy to bring its registration period to the full one year.

(4) If a contractor's surety bond or other security has an unsatisfied judgment against it or is canceled, or if the contractor's insurance policy is canceled, the contractor's registration shall be automatically suspended on the effective date of the impairment or cancellation. The department shall give notice of the suspension to the contractor.

NEW SECTION. Sec. 15. (1) The board shall appoint an advisory board to be called the contractors education board. The advisory board shall assist in the development of the education standards required under subsection (2) of this section. Members of the advisory board shall be representatives of contractor associations or other contractor organizations, except that one member shall represent education. Members of the advisory board shall not be entitled to compensation.

(2) The board shall require by rule that applicants for registration under this chapter provide evidence of completion of up to eight hours of education in subjects relating to business practices and laws that affect contractors. This provision shall not apply to contractors licensed prior to the effective date of this act.

(3) In adopting rules pursuant to this section, the board shall take into consideration the availability of training programs in areas of the state and shall encourage training providers to use the most up-to-date technology.

NEW SECTION. Sec. 16. A new section is added to chapter 43.22 RCW to read as follows:

The labor and industries certification account is created in the office of the state treasurer. All receipts from fees collected under RCW 18.27.070 and 43.22.480 shall be deposited into the account. Expenditures from the account may be used only for costs relating to regulation, certification, and approvals concerning contractors and factory built housing. Only the director of labor and industries or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures. On January 1 of each year, any funds in the account in excess of two million five hundred thousand dollars shall be transferred to the general fund.

NEW SECTION. Sec. 17. (1) Any person who violates any provisions of this chapter or any rule adopted under this chapter shall forfeit and pay into the general fund of the state treasury a civil penalty in an amount determined by the board of not more than one thousand dollars for each offense.

(2) The provisions of this section are in addition to and not in lieu of any other penalty or sanction provided by law.

NEW SECTION. Sec. 18. A contractor shall not hire any subcontractor or other contractor to perform work unless the subcontractor or contractor is registered under this chapter or exempt from registration under the provisions of RCW 18.27.090.

NEW SECTION. Sec. 19. A contractor shall not perform work subject to this section for an owner of a structure or property without a written contract if the aggregate contract price exceeds one thousand dollars. If the price of such contract was initially less than one thousand dollars, but during the course of performance of the contract exceeds that amount, the contractor shall mail or otherwise deliver a written contract to the owner not later than five days after the contractor knows or should reasonably know that the contract price will exceed one thousand dollars. Failure to reduce a contract to writing does not by itself make the contract void or voidable and does not by itself excuse performance.

NEW SECTION. Sec. 20. A contractor found to have committed an infraction under section 18 or 19 of this act or RCW 18.27.200 shall forfeit all lien rights under chapter 60.04 RCW that have been acquired.

NEW SECTION. Sec. 21. RCW 18.27.030 and 1992 c 217 s 1 & 1988 c 285 s 1 are each repealed.

NEW SECTION. Sec. 22. Sections 2 through 5, 7 through 13, 15, and 17 through 20 of this act are each added to chapter 18.27 RCW.

NEW SECTION. Sec. 23. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1993.